The rising euro-dollar exchange rate is weighing on Euronext.
By ODA UK | Published at
Today grain markets offered a wealth of trade news. Algeria bought approximately 550KT of milling wheat (mid-February/mid-March delivery), Taiwan purchased 112KT of U.S. wheat (February/March delivery), and Tunisia bought 100KT of durum wheat. At the same time, Egypt's calls for tenders (one for late February delivery; one for early March delivery) set the pace for the session. At the time of this writing, a purchase had not yet been made; however, despite U.S. offers, Russian wheat seemed better positioned. As the world's leading buyers returned to the marketplace, U.S. wheat prices were still rising as the European session ended.
Euronext wheat did not follow the movement due to pressure from the rebound in the euro-dollar exchange rate (+0.73%). Indeed, as it rose, the exchange rate crossed the bearish trend that began in March 2018 following remarks by a leader of the U.S. Federal Reserve that weighed on the dollar. Euronext maize also saw slight declines during the session.
In oilseeds, the soya complex was advancing in Chicago as it continued to follow the progress of trade talks between the United States and China. At the same time, crude prices rebounded more than 4% after Saudi Arabia's announcement that it promised to reduce its crude oil exports by 10% in January (as compared to November levels) to rebalance the market.
The euro's moves did not allow European rapeseed to benefit from increases by the U.S. soya complex and crude oil. The European grain finished the session slightly lower.